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Set up salary surcharges

In this article you'll learn how to configure salary surcharges in Kenjo by completing preparatory steps and defining surcharge conditions based on attendance categories, public holidays, or specific days and times.

Written by Franzi Schuetzer

In this article you'll learn how to configure salary surcharges in Kenjo by completing preparatory steps and defining surcharge conditions based on attendance categories, public holidays, or specific days and times. You will understand the requirements for enabling attendance tracking, assigning salaries, and verifying public holiday calendars before creating your surcharge rules. This article is for HR administrators who need to establish salary surcharges for their employees.

To effectively set up salary surcharges in Kenjo, follow these preparatory steps:

  • Enable attendance for your account: If not already done, go to Settings and activate the Attendance feature

  • Enable attendance for employees: Attendance tracking is crucial for the software to determine when an employee is working. Navigate to each employee's profile and click on Enable attendance tracking in the right-side panel

  • Add salaries for employees: Ensure that all employees who are eligible for surcharges have an active salary when the surcharge comes into effect.

  • Go to People > Compensation tab in the horizontal menu > Salary or use the import feature

  • Verify public holidays: Since public holidays impact surcharges, it's essential that both your company and employees have the correct calendar assigned. You can find more information on how to set up Public holidays on this article.

After completing these steps:


1. You can also watch this explainer video, that guides you through the steps:


2. Add a Salary Surcharge

  • Click on (+) ADD SALARY SURCHARGE to initiate the setup process. Here are the key details you need to provide:

✅ General:

  • Name: Specify a name for the surcharge

  • Description: Provide a brief description of the surcharge

✅ Conditions:

Under this section, you can define when the surcharge will be applicable. You can choose either or both of the following options:

  • Attendance Category: Decide whether the salary surcharge rule should not require an attendance category or is only applied when they is an attendance category selected. Find out more about attendance categories here.

  • Public holidays: This considers the company-specific calendar, including custom public holidays

  • Specific day and time: Here, you can select particular days and times when the surcharge applies, including the option for All day in which the surcharge begins at 00:00 on the chosen day

Note:

Let's take an example: Our new salary surcharge rule applies for the whole day on Sundays and public holidays:

  • Click NEXT

✅ Surcharge rate:

You're asked to select a percentage increase over the hourly base salary. Choose a number between 100 and 300 to define the rate. To gain a deeper understanding of how this rate is applied, read this article first.

Note:

Let's go back to our example: Employees receive a 200% rate for hours worked on Sundays and Public holidays. So Employees subject to this rule who track attendance on Sundays or public holidays will receive double their hourly rate for the hours worked.

  • Click NEXT

✅ Effective date:

Specify the date on which the surcharge will become effective. You can select any date in the future. Keep in mind that selecting a past date won't impact payrolls already confirmed in the payroll summary.

End date (Optional): You can optionally add an end date. It's advisable to leave this field empty unless you know that the surcharge and its conditions are applicable for a limited period.

  • Click NEXT

By following these steps, you can effectively manage and implement salary surcharges in Kenjo to ensure fair and accurate compensation for your employees.


3. Assign employees

Once you've created your surcharge rule, the next step involves assigning it to employees or keeping it unassigned for future use.

  • Navigate to Attendance > Settings > Salary surcharges

  • Find surcharge rule

  • Click the three-dot-icon on the row's right

  • Select Manage Employees

  • Click (+) ASSIGN EMPLOYEES

  • Apply the filters to search for specific employees or use the search bar left of the magnifying glass

  • Click the blue (+) to add employees and the trash-icon to delete them

  • Click ASSIGN EMPLOYEES to save your selection

Note:

When no salary is saved in an Employee's profile, you will see No salary next to the employee's name. You need to first add a salary via People > Compensation tab in the horizontal menu > Salary.


4. Assign employees in bulk

It's worth noting that bulk assignment can only be performed within the attendance settings, and access to this feature is limited to Admins and HR admins. Nevertheless, Finance admins also have the ability to individually assign surcharges to employees under the employee's compensation tab.

  • Find the blue ADD ALL at the bottom of the available employees column to add all employees or all employees you have pre-selected via the filters at once.

Hinweis:

Note: Consider using the Salary surcharges filter - this enables you to quickly identify employees who have already been assigned to previously created surcharges. This way, you can easily manage surcharge assignments.


5. Alerts in the surcharge rules

There are two possible alerts:

As already mentioned, you might come across the no salary while assigning surcharge rules in bulk:

No salary: This alert indicates that the employee doesn't have an active salary on the current date you are creating the surcharge. It's important to note that this date may differ from the starting date of the surcharge rule. If the surcharge rule starts prior to or on the same day as the current date, the surcharge won't take effect until a salary is added.

However, there is an edge scenario where a salary will be added in the future, and in that case, the surcharge rule will come into effect from that future date.

Example:

  • You create a Surcharge rule with a starting date of 01.01.2023.

  • Today's date is 01.07.2023.

  • Employee A's salary is scheduled to begin on 01.08.2023.

  • In this situation, the system will alert you that there is No salary, meaning the surcharge will only take effect from 01.08.2023 when the salary becomes active.

Yellow alert triangle: Additionally, you may encounter a yellow alert triangle, which signifies that the employee does not have attendance tracking enabled.

To enable attendance tracking:

  • Go to Employee > Personal > Enable attendance tracking

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